Virgin takes on BAA over delays payout

Virgin Atlantic has reopened the row with airports operator BAA over the level of service being provided at Heathrow and Gatwick since the summer's terrorist security alerts.

In a strongly worded letter, the airline will complain to the aviation regulator about a move by BAA to suspend compensation payments due to airlines affected by the chaos at Britain's two main airports.

The letter, which is to be delivered to the Civil Aviation Authority (CAA) today, says BAA is showing "a total disregard for due process". Virgin also accuses the CAA of planning to side with BAA.

BAA has signed a service quality agreement which triggers compensation to airlines when passengers are unduly delayed passing through security checks. Delays have lengthened since the summer. BAA says they are outside its control and it has temporarily suspended penalty payments. The CAA will decide if BAA is right to do this.

Virgin's letter says: "[We] strongly oppose the request from the BAA for the rebate to be suspended, and the CAA's proposal to acquiesce to this request... Virgin strongly questions the fairness of penalising airlines for the failures of the airport operator."

The airline said the payment suspension removes any incentive on BAA to improve standards.

British Airways is also believed to feel strongly about it, but no one was available for comment.

A spokesman for BAA said it would be unfair to make the company comply with a service agreement signed before the introduction of tougher security measures. "It quite naturally will take us time to adjust," he said.